KALYANI BARTER PRIVATE LIMITED vs. DCIT CIRCLE 13(1) DELHI & ANR.

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W.P.(C)/13526/2024HC DelhiDLHC01064827202418 October 2024Bench: HON'BLE MR. JUSTICE VIBHU BAKHRU,HON'BLE DR. JUSTICE SWARANA KANTA SHARMA3 pages
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What did the High Court hold?

The Delhi High Court held that the impugned notice dated 31.08.2024, issued under Section 148 of the Income Tax Act, 1961, for Assessment Year 2014-15, is barred by limitation. The Court relied on the Supreme Court's decision in Union of India & Others v. Rajeev Bansal, which clarified that a notice under the new regime cannot be issued if the time limit under Section 149(1)(b) of the old regime has expired. For AY 2014-15, the six-year period expired on 31.03.2021. As the notice was issued after this date, it was deemed invalid. Consequently, the impugned notice was set aside. The petition was allowed in terms of this decision.

What were the facts?

The petitioner, Kalyani Barter Private Limited, filed a writ petition before the Delhi High Court challenging a notice dated 31.08.2024 issued under Section 148 of the Income Tax Act, 1961, for Assessment Year (AY) 2014-15. The petitioner also challenged the prior notice under Section 148A(b) and the order passed under Section 148A(d). The petitioner argued that the issue was covered by previous High Court decisions. The assessment year in question is 2014-15, and the impugned notice was issued after the expiry of the six-year limitation period.

What were the issues?

1. Whether the notice issued under Section 148 of the Income Tax Act, 1961, for AY 2014-15 is barred by limitation, considering the provisions of the old regime as interpreted by the Supreme Court in Union of India & Others v. Rajeev Bansal. Assessee's Contention: The petitioner argued that the notice is barred by limitation. They relied on the decision in Manju Somani v. Income Tax Officer Ward-70(1) & Ors and passages from the Supreme Court's judgment in Union of India & Others v. Rajeev Bansal. Specifically, they highlighted that for AY 2014-15, the six-year period from the end of the relevant assessment year expired on 31.03.2021, and the impugned notice was issued thereafter. Revenue's Contention: The judgment records that the learned counsel for the respondent was unable to counter the submissions made by the petitioner.

Which sections of the Income-tax Act were involved?

Section 148,Section 148A,Section 149

AI-generated summary — verify with the full judgment below

$~90 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 13526/2024, CM APPL. 56525/2024 and CM APPL. 56526/2024 KALYANI BARTER PRIVATE LIMITED .....Petitioner Through: Mr Ruchesh Sinha with Ms Monalisa Maity and Ms Shilpa Choudhary, Advocates. versus DCIT CIRCLE 13(1) DELHI & ANR. .....Respondents Through: Mr Siddhartha Sinha, Sr. Standing Counsel. CORAM: HON'BLE MR. JUSTICE VIBHU BAKHRU HON'BLE MS. JUSTICE SWARANA KANTA SHARMA O R D E R % 18.10.2024 1. The petitioner has filed the present petition, inter alia, impugning a notice dated 31.08.2024 (hereafter the impugned notice) issued under Section 148 of the Income Tax Act, 1961 (hereafter the Act) for the assessment year (AY) 2014-15. 2. The petitioner also impugns the notice issued under Section 148A(b) of the Act, and the order passed under Section 148A(d) of the Act prior to the issuance of the impugned notice. 3. The learned counsel appearing for the petitioner submits that the issue stands covered by the decision of this Court in Manju Somani v. Income Tax Officer Ward-70(1) & Ors: Neutral Citation: 2024:DHC:5411-DB. This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 03/07/2025 at 09:30:25

4.

Mr Sinha, also referred to the decision of the Supreme Court in Union of India & Others v. Rajeev Bansal : 2024 SCC OnLine SC 2693 and drew the attention of this Court to the following passages from the said judgment: “46. The ingredients of the proviso could be broken down for analysis as follows: (i) no notice under Section 148 of the new regime can be issued at any time for an assessment year beginning on or before 1 April 2021; (ii) if it is barred at the time when the notice is sought to be issued because of the “time limits specified under the provisions of” 149(1)(b) of the old regime. Thus, a notice could be issued under Section 148 of the new regime for assessment year 2021-2022 and before only if the time limit for issuance of such notice continued to exist under Section 149(1)(b) of the old regime. *** *** *** 49. The first proviso to Section 149(1)(b) requires the determination of whether the time limit prescribed under Section 149(1)(b) of the old regime continues to exist for the assessment year 2021-2022 and before. Resultantly, a notice under Section 148 of the new regime cannot be issued if the period of six years from the end of the relevant assessment year has expired at the time of issuance of the notice. This also ensures that the new time limit of ten years prescribed under Section 149(1)(b) of the new regime applies prospectively. For example, for the assessment year 2012- 2013, the ten year period would have expired on 31 March 2023, while the six year period expired on 31 March 2019. Without the proviso to Section 149(1)(b) of the new regime, the Revenue could have had the power to reopen assessments for the year 2012-2013 if the escaped assessment amounted to Rupees fifty lakhs or more. The proviso limits the retrospective operation of Section 149(1)(b) to protect the interests of the assesses.” 5. In the present case, the period of six years for the relevant AY 2014- 15 expired on 31.03.2021. The impugned notice has been issued thereafter, and the same is thus barred by limitation. This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 03/07/2025 at 09:30:25

6.

The learned counsel for the respondent is unable to counter the said submissions. 7. In view of the above, the impugned notice is set aside. 8. The petition is allowed in the aforesaid terms. Pending applications also stand disposed of. VIBHU BAKHRU, J SWARANA KANTA SHARMA, J OCTOBER 18, 2024 /tr Click here to check corrigendum, if any This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 03/07/2025 at 09:30:25

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